Daimler, Rolls launch takeover bid for Tognum

FRANKFURT: German automaker Daimler and Britain's Rolls-Royce launched on Wednesday a plan to take over Tognum, a German maker of motors and turbines that values Tognum at 3.2 billion euros ($4.6 billion). Daimler and Rolls-Royce said the offer of 24 euros per share would run until May 18. On Tuesday, Tognum shares closed at 25.57 euros, a gain of around 30 percent since the beginning of the year. The two groups had already said they would create a 50:50 joint venture called Engine Holding to make the bid, and work to make the new entity "a world leading engine systems company." The venture is to focus on the "off-highway" sector of marine, energy, defence and industrial applications. Tognum is based in Friedrichshafen, southern Germany, and its headquarters would remain there with no reduction in jobs. Daimler already owns 28.4 percent of Tognum and together with Rolls-Royce wants to put it in a position to offer a wider range of products, systems and services, they said in early March. Tognum also builds motors for armoured vehicles and boats and posted sales of 2.5 billion euros ($3.5 billion) in 2009, a level it expected to reach again in 2010. It employs 8,700 people worldwide.